TaxTMI 
TaxTMI 
2020 (1) TMI 1105
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.... with section 144C(13) of the Income Tax Act, 1961(hereinafter 'the Act). 2. The only issue in this appeal of assessee is against the order of DRP and AO in disallowing the depreciation of goodwill. For this assessee has raised the following ground: - "1. Depreciation On Goodwill Resulting From Acquisition Of Business Unit Of Lee & Muirhead Pvt. Ltd. In A.Y. 2008-09. 1.1 On the facts and in the circumstances of the case and in law, the learned A.O. erred in not allowing Depreciation of Rs. 9,43,34,545/- claimed @ 25% under applicable provisions of Section 32 of IT Act on the Brought Forward Balance of Written Down Value of the Block of Assets of Rs. 37,73,38,183/- under the Head Intangible Assets-Goodwill consisting of various intangib....
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....angible Assets-Goodwill consisting of various Intangible Assets arising out of the acquisition of business unit of Lee & Muirhead Pvt. Ltd for AY. 2009-10. It is prayed that the learned A.O. be directed to allow depreciation of Rs. 9,43,34,545/- on Intangible Assets including goodwill claimed @ 25% under applicable provisions of Section 32 of IT Act on the Brought Forward Balance of Written Down Value of the Block of Assets of Rs. 37,73,38,183/- under the Head Intangible Assets-Goodwill consisting of various Intangible Assets arising out of the acquisition of business unit of Lee & Muirhead Pvt. Ltd." 3. Briefly stated facts are that the AO disallowed the depreciation of Rs.9,43,34,545/- claimed at the rate of 25% under section 32 of the....
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....-190/2011-12 and thus, the issue is squarely covered in favour of the assessee by its own case in the earlier years. After considering the relevant records, orders of authorities below, we find that the similar issue has been decided by the FAA for the assessment year 2008-09 in favour of the assessee holding that the assessee was entitled to depreciation on goodwill by following the decision of Apex Court in the case of Smifs Securities Ltd (supra). We, therefore, are of the considered opinion that the case of the assessee stands covered by the earlier decision by the order of FAA. Therefore, we do not find any infirmity in the order of ld. CIT(A). Accordingly, we dismiss the appeal of the revenue. 5. Similarly, the tribunal in assessee'....
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.... which were acquired under the business transfer agreement. The dispute is only confined to claim of depreciation on intangible asset. The Hon'ble Jurisdictional High Court in Prithvi Brokers and Shareholders Pvt. Ltd. (supra) after taking note of the ratio laid down by the Hon'ble Supreme Court in Goetze India Ltd. (supra) has held that even assuming that the Assessing Officer is not entitled to grant a deduction on the basis of a letter requesting an amendment to the return filed, the appellate authority is entitled to consider the claim and to adjudicate the same. The Hon'ble Court referring to a number of decision of the Hon'ble Supreme Court including the decision of Goetze India Ltd. (supra) ultimately held that the ap....
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.... not made through a revised return of income. Further, the contention of the Department that by virtue of CBDT circular no.549 dated 31st October 1989, the assessed income cannot be less than the returned of income is also not acceptable in view of the decision of the Hon'ble Andhra Pradesh High Court in Bakelite Hylam Ltd. (supra) and the decision of Hon'ble Gujarat High Court in Gujarat Gas Co. (supra). 12. Having held so, now we have to consider whether goodwill is an intangible asset under section 32, hence, eligible for claim of depreciation. In our view, this issue is no more res integra in view of the decision of Hon'ble Supreme Court in Smifs Securities Ltd. (supra) where the Hon'ble Supreme Court has held that goo....